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Determinants of Search for Nondurable Goods: An Empirical Assessment of the Economics of Information Theory
Author(s) -
AVERY ROSEMARY J.
Publication year - 1996
Publication title -
journal of consumer affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.582
H-Index - 62
eISSN - 1745-6606
pISSN - 0022-0078
DOI - 10.1111/j.1745-6606.1996.tb00064.x
Subject(s) - search cost , point (geometry) , incentive , economics , antecedent (behavioral psychology) , marketing , information economics , microeconomics , advertising , business , psychology , social psychology , mathematics , geometry
This paper examines the usefulness of Stigler's (1961) Economics of Information Theory in the study of consumer search in a market for frequently purchased, nondurable grocery items. The empirical model examines antecedent (pre‐store) and point of purchase (in‐store) search. It incorporates and contrasts economic incentives for search with noneconomic involvement‐based motivations and perceived versus actual costs associated with search. Data used in the analysis were collected in a large midwestern city during 1990. Results indicate that Stigler's cost‐benefit model provides a better fit for pre‐store rather than in‐store search activities. Pre‐store search activities were found to be driven by time, monetary, and mobility constraints. Pre‐store search activity was not found to be significant in explaining in‐store search activities. In‐store search activities were significantly explained by only household size. Shopping involvement was not found to be related to pre‐ or in‐store activities. A comparison of objective and subjective measures of search costs rendered comparable results.